Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$3.03bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$2.89bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.74%, resulting in a market volume of US$3.14bn by 2029.

Definition:

Wealth management is a service provided by financial institutions, such as banks or investment firms, to help individuals manage their money and investments. The goal of wealth management is to help people grow and protect their wealth over time, by creating personalized investment plans that consider their financial goals, risk tolerance, and overall financial situation. This goal ultimately emphasizes wealth creation through wealth preservation.

Structure:

The Wealth Management market consists of two different segments, Financial Advisory and Digital Investment. Financial Advisory covers traditional financial advisory services and provides a broader look into the revenue generated by this offering. Digital Investment contains automated investment services (Robo-Advisors) and online trading services (Neobrokers) that go beyond the means of traditional financial advisory services.

Additional information:

The market comprises of revenues, number of advisors, average revenue per advisor, assets under management (AUM), users, average revenue per user, and average AUM per user. Revenues are generated through the financial advisory services offered by the financial institutions within the Wealth Management market space. The market only displays B2C revenues and users for the above-mentioned segments and subsegments; B2B and B2G revenues are not included. Additional definitions for each segment can be found on the respective segment pages.
Market numbers for Digital Investment are also featured among our digital markets, namely in the Digital Investment segment of the Fintech market.
Key players in the market include financial institutions such as BlackRock, Vanguard Group, Fidelity Investments, State Street Global, and J.P. Morgan Chase & Co.

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Traditional & Digital Wealth Management (non-automated & automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
Digital Investment, incl. Robo-advisors and Neobrokers
Full-Service Products for Investing and Trading
Retail/Non-Professional Investors

Commercial Assets or Assets Under Custody
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Full-Service Products for Insurance and Lending

The Wealth Management market in Estonia has seen significant growth and development in recent years.

Customer preferences: Estonian customers have shown a strong preference for personalized and tailored wealth management services. They value a high level of expertise and trust in their wealth managers, and are willing to pay for premium services. Additionally, there is a growing demand for sustainable and socially responsible investment options, as customers become more conscious of the environmental and social impact of their investments.

Trends in the market: One of the key trends in the Estonian Wealth Management market is the increasing adoption of digital platforms and robo-advisors. This trend is driven by the younger generation of investors who are comfortable with technology and prefer the convenience and accessibility of online platforms. Wealth management firms in Estonia are investing in advanced digital tools and platforms to cater to this growing segment of customers. Another trend in the market is the emergence of niche wealth management firms that specialize in specific areas such as real estate investments or alternative investments. These firms offer unique investment opportunities and strategies that appeal to a specific group of investors. This trend reflects the growing sophistication and diversification of the Estonian wealth management market.

Local special circumstances: Estonia is known for its strong entrepreneurial culture and innovative start-up ecosystem. This has led to a significant number of high-net-worth individuals who require wealth management services to manage and grow their wealth. Wealth managers in Estonia are well-positioned to cater to this segment of customers by providing specialized services such as business succession planning and investment in start-ups.

Underlying macroeconomic factors: The Estonian economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This has resulted in an increase in disposable income and wealth accumulation among the population. As individuals accumulate wealth, they are seeking professional advice and services to manage and grow their assets. The favorable economic conditions in Estonia are driving the growth of the wealth management market. Furthermore, Estonia is a member of the European Union and benefits from the free movement of capital within the EU. This allows wealth managers in Estonia to offer their services to clients across the EU, expanding their customer base and market reach. The integration with the EU also ensures that wealth management firms in Estonia adhere to high regulatory standards, providing customers with a sense of security and trust in their services. In conclusion, the Wealth Management market in Estonia is experiencing growth and development driven by customer preferences for personalized services, the adoption of digital platforms, and the emergence of niche wealth management firms. The strong entrepreneurial culture and favorable macroeconomic factors in Estonia further contribute to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.